Easter and school holidays have not seemed to dampen the enthusiasm in the Sydney marketplace in certain segments. At PK Property, we are still seeing a shortage of stock in the blue chip areas of Sydney especially in the unit market $500-$750,000 range and now free standing homes up to $1.5 million and then from $2 to $2.5 million.
Everyone is talking about an interest rate cut in May and that might very well happen, and if it does you watch the bottom of the Sydney property market fly.
I have been writing in all my newsletters for the past 5 months or so that I believe rents will back off in 2012 and landlords will no longer be king, as more buyers will move out of the rental market and start purchasing. Well this was confirmed by RP Data and Australian property monitors reporting that March was a month of stabilising rents in Sydney.
Understand everyone that the government are now determined to fire up the property market and the economy in general, and how they do this is not complicated. First of all interest rates get to a level where the gap between renting and buying becomes minimal, and once the market starts to move upwards people start to trade in the housing market again. Capital growth usually runs for about 2 to 3 years before interest rates get too high and the cycle starts all over again.
Understand if people see their property grow in value, they feel more secure in life and therefore happier and spend more money out there in the economy. It's all about consumer confidence.
PK's Property Market Predictions for 2012
The Sydney market in general started to move around November 2011, and there is no doubt that 2012 has been a much better year than 2011 which in my mind would have been the perfect year to buy.
If you are looking at upgrading this is the perfect time to do it, and should you be investing rental increases will be minimal for the next 3 years but capital growth will be exceptional.
PK's Hot Tip
Also don't forget PK's tutorial 2min youtube videos showing you hot tips and negotiating tricks of the trade.
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